Tamil Nadu files plea to quash summons to 5 Collectors by ED

In a significant legal development, the Tamil Nadu government has moved to quash the summons issued by the Enforcement Directorate (ED) to District Collectors in connection with a sand mining money laundering case. The petitions were filed at the Madras High Court on Friday by the Secretary of the Public and Rehabilitation department on behalf of the collectors. The ED’s investigation was prompted by allegations of money laundering and substantial tax evasion within the sand mining industry. The District Collectors of Thanjavur, Trichy, Karur, Ariyalur, and Vellore were summoned as part of this inquiry. The ED is examining the case as a predicate offence, indicating offenses with a total value of Rs 1 crore or more. The Tamil Nadu government contends that the ED’s investigation violates the principles of federalism and separation of powers. The petitions seek directions from the high court to declare that the ED cannot investigate predicate offenses within a state’s territorial limits without the state’s consent. The government argues that ED inquiries should only be conducted at the request of state agencies, the state government, or under court directions. It accuses the ED of engaging in a “roving enquiry” that hampers state administration and functioning. A key argument put forth by the Tamil Nadu government is that the ED lacks jurisdiction over the mining leases for sand excavation, as these matters fall under various state laws. The government accuses the ED of overstepping its authority under the Prevention of Money Laundering Act (PMLA). “The ED under the garb of exercising powers under the PMLA cannot initiate action in matters wherein they have no jurisdiction,” asserts the state government.